Micron Technology Inc. is set to report its fiscal first-quarter earnings after market close on Wednesday, with investors closely watching whether the memory-chip maker can exceed already-strong expectations and reassure markets about the durability of the artificial intelligence trade.
After a year of exceptional stock performance, the company’s outlook will likely play a decisive role in determining near-term sentiment.
Strong expectations ahead of results
Wall Street expects Micron to report revenue of $12.9 billion for the November quarter, alongside adjusted earnings per share of $3.96.
Looking ahead, analysts forecast revenue of $14.3 billion and EPS of $4.78 for the current quarter.
These expectations reflect sustained demand across Micron’s core businesses, particularly in dynamic random-access memory (DRAM) and flash memory, as well as its growing role as a supplier of high-bandwidth memory (HBM) used in AI servers.
Optimism remains strong among some analysts.
On Tuesday, Needham analyst N. Quinn Bolton raised his price target on Micron shares to $300 from $200, reiterating a Buy rating.
He cited robust demand conditions in the data center market and noted that rising spot prices for memory chips could translate into higher contract pricing over the coming quarters.
Micron shares have risen roughly 175% this year, far outpacing the Nasdaq Composite’s 19% gain.
The stock is also among the top performers in the S&P 500 Index in 2025, underscoring its status as one of the market’s standout beneficiaries of AI-driven investment.
Valuation debate and AI skepticism
Despite its strong performance, Micron’s stock has pulled back recently, falling about 12% over the past four days after hitting a high on December 10.
The retreat highlights growing caution among investors toward AI-related equities, particularly after recent disappointments from Oracle and Broadcom, both of which fell sharply following earnings updates.
Some market participants argue Micron remains attractively valued compared with peers.
The shares trade at nearly 11 times estimated earnings over the next 12 months, the lowest multiple in the 30-member Philadelphia Stock Exchange Semiconductor Index.
By comparison, Nvidia trades at around 24 times forward earnings, while Broadcom and Advanced Micro Devices hover near 33.
“Micron looks reasonably valued, if not downright cheap,” said Wayne Kaufman, chief market analyst at Phoenix Financial Services said in a Bloomberg report.
He noted that while memory stocks are historically cyclical, Micron’s current valuation reflects a balance between its past trading patterns and expectations for strong growth over the next year.
Outlook hinges on sustained AI demand
The central question for investors is whether Micron can continue delivering accelerating momentum.
Persistent spending on AI data centers is expected to support demand for HBM chips, but recent market reactions suggest tolerance for disappointment is low.
“If we see a deceleration, it could be devastating for the stock,” said Louis Navellier, chief executive officer of Navellier & Associates.
While some strategists have flagged Micron as meeting certain definitions of a market bubble based on share-price performance, traditional valuation metrics suggest otherwise.
Meanwhile, Wall Street’s outlook has grown more optimistic.
Consensus estimates for Micron’s fiscal 2026 net earnings have risen more than 50% over the past quarter, with revenue expectations up over 20% in the same period, according to Bloomberg data.
As Micron prepares to report, its earnings and guidance will serve as a key test of whether enthusiasm around AI-driven memory demand can justify its stellar run—or whether skepticism will continue to weigh on the shares.
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